Bond yields edged higher on Tuesday, as Reserve Bank of India Governor Shaktikanta Das came up with two key measures to improve the liquidity condition of the Indian economy and financial markets.
In the global market, U.S. government debt yields fell on Monday after the Federal Reserve announced it would slash interest rates to near zero, but remained above session lows as investors fretted that Treasuries would sell off as they did last week. Furthermore, oil prices rose more than $1 as the recent sharp falls due to the coronavirus pandemic encouraged bargain hunters to come forward, although the market remains volatile as the spread of the infection disrupts economies and hurts demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.23% from its previous close of 6.20% on Monday.
The benchmark five-year interest rates were trading 9 basis points higher at 6.03% from its previous close of 5.94% on Monday.